Living Trusts Versus Living Wills: Which One Is Right for You?

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Estate planning — the process of determining how to manage a person's assets if they become incapacitated or die — makes it easier to pass on assets to heirs. Two methods of estate planning that people often confuse, due largely to their similar names, are living wills and living trusts. While they may sound alike, and while both are used to dictate how assets are handled following certain life events, there are some key differences to be aware of before choosing to utilize one or both.